Wednesday, December 23, 2015

U.S. lowers tax barriers to allow foreigners to buy more property and investments

Since the 1990’s, central bank policy has been to create monetary environments that build financial bubbles to make the economy look much better than it actually is.  And just as we recently saw where Fannie Mae is engineering amodified resurrection of sub-prime lending to boost the current housing bubble even further, the government is also jumping on the bandwagon by lowering a 35 year old tax rule that kept out foreign investors from buying up American property.
Known as the 1980 Foreign Investment in Real Property Tax Act, or FIRPTA, this act had created a disincentive for foreign individuals and institutions to buy property in the U.S., and keep Wall Street investments like REITS from being controlled by offshore entities.  But after passage of the new $1.1 trillion Omnibus spending bill last week, Congress and the President cut this Act to facilitate the inflow of foreign capital to keep the newest housing bubble from bursting.

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